Scheduled System Maintenance:
Some services will be unavailable Sunday, March 29th through Monday, March 30th. We apologize for the inconvenience.
By Topic

Strategic Management of Multi-Year Natural Gas Contracts in Electricity Markets

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

3 Author(s)
Duenas, P. ; Adv. Tech. Eng. Sch. (ICAI), Comillas Pontifical Univ., Madrid, Spain ; Barquin, J. ; Reneses, J.

Combined cycle gas turbine (CCGT) plants show some advantages, such as better economies of scale, or lower CO2 emission rates, in comparison to other technologies. In addition, due to their flexible operation, CCGT plants are a useful support for the integration of the growing renewable energy installed capacity. Consequently, during the last years, CCGT plants have proliferated in electricity systems, increasing the global demand of natural gas (NG). In order to guarantee the NG supply and to hedge the price volatility, electricity generation companies (Gencos) sign supply contracts with NG producers. Typically, NG producers force long-term contracts in order to recover their huge capital investments. Therefore, Gencos should optimize the exercise of the supply contracts in the long-term scope in order to maximize their profits in the electricity market. However, the optimal exercise of the supply contracts on behalf of the Gencos could be impeded because of possible bottlenecks in the NG system. Accordingly, this paper proposes a methodology to incorporate both the characteristics of NG supply contracts and the congestions in the NG system in an electricity market model that could support the decision-making process on behalf of the Gencos. A study case illustrates the methodology.

Published in:

Power Systems, IEEE Transactions on  (Volume:27 ,  Issue: 2 )